Iberdrola Closes Friendly Acquisition of Energy East

Iberdrola has closed the friendly acquisition of Energy East, a transaction ultimately valued at E3.22 billion in cash plus another E2.86 billion in debt, a total of E6.09 billion which compares to the E6.4 billion initially estimated.

The company had already arranged financing for the acquisition through a E3.4 billion capital increase, raised via an accelerated bookbuilding offer (ABO) in June 2007.

With the acquisition of Energy East, Iberdrola increases its assets in the US to around $20 billion. It expects the US to contribute 10% to total group earnings before interest, taxes, depreciation and amortization within three years, according to objectives set by the 2008-10 strategic plan.

With the integration of ScottishPower and Energy East, Iberdrola expects to exceed E3 billion in net profit in 2008, compared to E2.35 billion in 2007.